Finance for non Financials III

Role of Finance in Business Management

Extreme speed of globalization, availability of huge data and tools and customer rights, environmental sensitivity, sustainable business growth and work force trends and preferences necessitate the establishment of a very strong finance function.

Mastery of the financial principles and decisions by the senior business management and financial assurance of right business decisions are now crucial for the shareholders, investors, employees and  customers to make financially sound and well managed corporate decisions.

 

With understanding and utilization of the basic financial planning and reporting principles and tools, corporate leadership can better plan and manage the profitability, solvency, efficiency, risk and overall performance of their organizations and thus satisfy the requirements of their key stakeholders.

  • Financial reporting should provide information that is useful to, current and potential, investors and creditors and other users in making rational investment decisions
  • The information should be comprehensive to those who have a reasonable understanding of business and economic activities and are willing to study the information with reasonable diligence.

The information should reflect a true and fair value of the company activities

Finance therefore fulfils two roles:

 

  • Compliance/Fiduciary Duty
    • Transparency to investors
    • Legal, Regulatory and Tax compliance in jurisdictions the company operate in
    • Record keeping
  • Business Support
    • Translate strategy into financial goals
    • Financial budget planning & forecasting
    • Support management decision and control
    • Management Reporting
    • Ad-hoc analysis of resource allocation proposals

For the Business Support role, finance is one of the four key set
of business fundamentals in the Balance Scorecard:

 

In cooperation with KnowledgeTrack, Swiss Business Institute Sarl will deliver a one-hour free webinar on january 28th, at masteringknowledge.com in advance of a 2 full day live on-line training 

This free webinar will help you to:

  • Emphasize the criticality of using the same language in finance
  • Understand basic concepts and terminology of accounting and finance
  • Become familiar with basic financial statements
  • Be able to use analysis tools in evaluating financial performance and investment proposals
  • Better understand financial implications of business decisions
  • Improve and master financial planning process for business

This course is developed to equip non-finance corporate leadership with the required financial concepts, tools and techniques through a model of seminar, pre- and post-training reading and assignments and exercises.

Yes, I want to attend the free webinar!
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Finance for non Financials

Translate financial information into valuable knowledge

Do you and your organization speak the same language on a strategic and operational level, so you can successfully translate your vision into implementation and thus achieve policy goals? Knowledge management for financials is about developing a coherent governance model which rises the value of knowledge for your organization. To improve the added value of your organization and achieve a higher return on information you learn literally to Translate information into knowledge. Based on a conceptual framework you will learn to recognize the power of mutual language between finance and the enterprise.

The corporate business management has never been so challenging due to the extreme speed of globalization creating very complex dependencies and risks, the availability of huge data and tools to measure the business performance and new kinds of strong trends and risks in areas like customer rights, environmental sensitivity, sustainable business growth and work force trends and preferences. These trends and developments necessitate the establishment of a very strong finance function as well as mastery of the financial principles and decisions by the senior business management. The financial assurance of right business decisions is now part of having ‘’business acumen’’. All the stakeholders including shareholders, investors, employees, customers, etc. now need financially sound and well managed corporations.

With understanding and utilization of the basic financial planning and reporting principles and tools, corporate leadership can better plan and manage the profitability, solvency, efficiency, risk and overall performance of their organizations and thus satisfy the requirements of their key stakeholders. Besides the quality of financial systems and team structure, it is equally critical that all the management, finance teams and all the stakeholders speak same language in terms of financial goals and concepts.Necessary checks and systems should be put in place to ensure the coherence of financial language in all the organizations.

In cooperation with KnowledgeTrack, Swiss Business Institute Sarl will deliver a one-hour free webinar on january 28th, at masteringknowledge.com in advance of a 2 full day live on-line training 

This free webinar will help you to

  • Emphasize the criticality of using the same language in finance
  • Understand basic concepts and terminology of accounting and finance
  • Become familiar with basic financial statements
  • Be able to use analysis tools in evaluating financial performance and investment proposals
  • Better understand financial implications of business decisions
  • Improve and master financial planning process for business

This course is developed to equip non-finance corporate leadership with the required financial concepts, tools and techniques through a model of seminar, pre- and post-training reading and assignments and exercises.

Yes, I want to know more about the free webinar!
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Finance for non Financials II

Coherance of Finance Metrics

 

  • Can we grow and still be profitable in times of uncertainty?
  • Can we innovate and achieve our financial goals as well?
  • What is actually profit? Is it the same as cash?
  • How can we make our stakeholders happy? By the way, who are the stakeholders?
  • What is our long-term strategy and short-term operational objectives? Are they in line?
  • Does every member of our team understand the strategy? Do they know what they should do to support it?

While many organizations will struggle to define and communicate these fundamental and vital questions, others will be proud to refer to their annual reports, investor analysis and internal memorandums and prove that these fundamentals are well thought and documented, at least by senior management. But we know that senior management is aware of only 4% of the problems in the organizations, middle management about 9% and only the operating levels know them all.

So, it is imperative that any organization that decides and documents on their financial fundamentals that will help make the strategic objectives but it is even more crucial that all the troops also understand and support them and aligned to make them.
When the CEO declares ‘’our focus is growth and sky is the limit’’, the supply chain planner understands more units to ship, sales rep understands more prices to cut, accounting understands more reports to reconcile, treasury understands more forward contracts to engage, etc. And how all these different looking and crucially metrics are defined and reconciled.

Half of the Fortune 500 companies on the 1954 list don’t exist at all today. Not because they did not have a greatstrategy! Global organizations have become so big and complex that congruence of the financial metrics have become even vital than ever. Congruence of the financial metrics mean; all troops speak the same financial language meaning they are all aligned and working in the same direction.

It has been observed that, contrary to the general belief ignorance level of the organization about the problems that exist, is like an iceberg and the higher you are in the organization, the less you are informed, particularly about the financial metrics.

Whether you are a global business or an NGO or a public organization, of different size and scale, you will have a purpose of existence. What finance does is to translate your business objective and plans into a financial plan that includes all areas like planning, budgeting, pricing, cost management and financing your operations with the appropriate financial metrics that are planned, measured and managed realization if which will also help you to achieve your business objective.

So, information should be from top to bottom and from bottom to top in a coherent and consistent way and “speaking the same language”, especially in financial terms and metrics (profit, cash, return on investments, budget/actual rate, dividend, expenses/costs, etc.)

In cooperation with KnowledgeTrack, Swiss Business Institute Sarl will deliver a one-hour free webinar on january 28th, at masteringknowledge.com in advance of a 2 full day live on-line training 

This free webinar will help you to:

  • Emphasize the criticality of using the same language in finance
  • Understand basic concepts and terminology of accounting and finance
  • Become familiar with basic financial statements
  • Be able to use analysis tools in evaluating financial performance and investment proposals
  • Better understand financial implications of business decisions
  • Improve and master financial planning process for business

This course is developed to equip non-finance corporate leadership with the required financial concepts, tools and techniques through a model of seminar, pre- and post-training reading and assignments and exercises.

Yes, I want to attend the free webinar!
/0 Comments/by